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After they have killed the Black Bow Bandits and Black Brugo, the Count of Leyawiin will grant them the Title of Knight-Errant of the White Stallion and the Leyawiin Shield. They also get the key to the lodge and so does Mazoga.

Follow the map to the ruin — Black Brugo is supposed to be there after midnight. There is a bandit that will shoot arrows at them from the top of the ruin, so kill him first (it's possible that there's also a bandit hedge wizard in front of the ruin). Enter the ruin and they'll fight Black Brugo, his friends Roxy Aric and Alonzo, and several other bandits.

It's a tough battle so be sure to bring healing potions (and a heal other spell for Mazoga). Brugo carries a key, which allows them to explore the rest of the ruins and loot anything found. Once they've killed him, return to the Count for the reward. He will reward them with the title of Knight-Errant, and bestow you with a key to the White Stallion Lodge.

The count will also offer 100 for each Black Bow they've retrieve thereafter.

Count Marius Caro of Leyawiin has offered to make Mazoga and myself Knights-Errant of the White Stallion if we find and kill the Orc named Black Brugo, chieftain of the Black Bow Bandits.

Update: After speaking to Marius Caro about Black Brugo:

To locate Black Brugo, the Count suggested I should ask Mazoga, who might have contacts among outlaws.

Update: After speaking to Mazoga:

Mazoga knows Black Brugo, and has a plan to ambush him. Black Brugo visits his gang's hideout to collect his share of the loot every night between midnight and six in the morning. The hideout is an Ayleid ruin west of Leyawiin called Telepe. Mazoga offered to help me find and kill Black Brugo. She will wait in the Castle Hall until I ask her to follow me.

Update: After telling Mazoga to follow:

Mazoga was reluctant to betray a former associate, but she says, sooner or later, Black Brugo visits a hideout west of Leyawiin called Telepe.

Update: After killing Black Brugo:

Black Brugo is dead. I must report to Marius Caro and become a Knight-Errant of the White Stallion.

Update: After returning to Marius Caro:

The Count praised us for killing Black Brugo. He has made Mazoga and me Knights-Errant of the Order of the White Stallion, and has given us guard's shields bearing the heraldry of Count Leyawiin, and keys to White Stallion Lodge on the western shores of the Niben River. The Count also asked us to find and kill any remaining members of the Black Bow Bandits, and promised a bounty of 100 gold for every Black Bow we deliver to him.

Also search Black Brugo's body for a key, then go into the room with the destroyed column. Look into each corner to find a button, press it then go into the hall. The door will be open, so go into that room and open the coffer with the key. Inside is 300 and a handwritten note.